Workflow
TowneBank to Buy Dogwood for $476.2M, Expand Presence in Carolinas
Towne BankTowne Bank(US:TOWN) ZACKSยท2025-08-20 16:46

Core Viewpoint - TowneBank has agreed to acquire Dogwood State Bank to expand its presence in the high-growth markets of the Carolinas, with the transaction expected to close in early 2026, pending regulatory and shareholder approvals [1]. Company Acquisition Details - The acquisition will involve Dogwood shareholders receiving a fixed exchange ratio of 0.700 shares of TowneBank common stock for each outstanding share, valuing the deal at $25.04 per share or $476.2 million [3][7]. - The transaction is anticipated to incur one-time merger and integration costs of $45 million, with expected cost savings of 35% of non-interest expenses, primarily realized in 2026 [4][7]. Financial Impact - TowneBank expects the acquisition to be 8% accretive to its earnings per share by 2027, with a tangible book value per share dilution of 6% at closing and an earn-back period of less than 4 years [4][7]. - The acquisition is expected to enhance TowneBank's position as a premier regional banking company in the Southeast [5]. Leadership and Integration - Steve Jones, the CEO of Dogwood, will continue in a key leadership role as president of TowneBank's North Carolina and South Carolina banking operations [2]. Market Performance - Year-to-date, TowneBank's shares have increased by 3.9%, outperforming the industry growth of 1.8% [6].